Suppose that you are operating a restaurant and are planning to open for takeout breakfast service....

 

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Suppose that you are operating a restaurant and are planning to open for takeout breakfast service. Based on your study of the customer traffic around the area, you expect that the business would attract an average of 48 customers per hour during the breakfast hours from 6AM to 10 AM. You may not choose to operate throughout the four hours, while you would run at least 2 hours every day. The number of customers in k hours follows a Poisson distribution with a mean of 48k. The cost of making a breakfast meal varies depending on the purchase cost of the materials. You estimate that this cost varies from $2 to $2.5 for each meal, with the most likely value being $2.2. You plan to charge $8 dollars for each meal. You expect to produce a minimum of 100 meals a day, while you would not be able to product more than 500 meals each day. Questions: 1. Suppose you choose to operate 3 hours every day and produce 200 meals. Set up a simulation model using @Risk to define random input and output to evaluate the profitability of your business 2. Use data table to evaluate the possible scenarios of operating 1,2,3,4 hours and producing 100,150, 200, 250, 300, 350, 400, 450, 500 meals. Find the decision that generates the most average profit. Selling price per unit Production cost per unit Operting hours Average customer per hour Total customer Sales Cost Revenue Profit Production quantity Froduction quantity Froduction quantity $8 200 100 150 200 250 300 350 400 450 500 Mean 100 200 250 300 350 400 450 500 31 48 Stdev 100 200 250 300 350 400 Alin Max Mode 2.2 2 2.5 Min Max 2 4 100 500 Operating hour 7 2 3 Operating hour 7 2 Operating hour 7 3 2 3 4 4 4 Answers to the questions: [You should summarize your answers to the question here] a) Set up a simulation model using @Risk to define random input and output to evaluate the profitability of your business b) Find the decision that generates the most average profit. Suppose that you are operating a restaurant and are planning to open for takeout breakfast service. Based on your study of the customer traffic around the area, you expect that the business would attract an average of 48 customers per hour during the breakfast hours from 6AM to 10 AM. You may not choose to operate throughout the four hours, while you would run at least 2 hours every day. The number of customers in k hours follows a Poisson distribution with a mean of 48k. The cost of making a breakfast meal varies depending on the purchase cost of the materials. You estimate that this cost varies from $2 to $2.5 for each meal, with the most likely value being $2.2. You plan to charge $8 dollars for each meal. You expect to produce a minimum of 100 meals a day, while you would not be able to product more than 500 meals each day. Questions: 1. Suppose you choose to operate 3 hours every day and produce 200 meals. Set up a simulation model using @Risk to define random input and output to evaluate the profitability of your business 2. Use data table to evaluate the possible scenarios of operating 1,2,3,4 hours and producing 100,150, 200, 250, 300, 350, 400, 450, 500 meals. Find the decision that generates the most average profit. Selling price per unit Production cost per unit Operting hours Average customer per hour Total customer Sales Cost Revenue Profit Production quantity Froduction quantity Froduction quantity $8 200 100 150 200 250 300 350 400 450 500 Mean 100 200 250 300 350 400 450 500 31 48 Stdev 100 200 250 300 350 400 Alin Max Mode 2.2 2 2.5 Min Max 2 4 100 500 Operating hour 7 2 3 Operating hour 7 2 Operating hour 7 3 2 3 4 4 4 Answers to the questions: [You should summarize your answers to the question here] a) Set up a simulation model using @Risk to define random input and output to evaluate the profitability of your business b) Find the decision that generates the most average profit.